Business Basics Resource Guide
Milt Wright & Associates
BARTERING
Bartering
can reduce the cost of
starting or expanding your business
Bartering
is a wonderful way of accessing support to start or
expand your business. Services can be traded. The fair
market value of goods and services exchanged must be
included in the income of both parties.
For example:
- An
accountant has a need for website design
and a web designer has a need for accounting services. - A
marketing consultant has a need to send their dog
to obedience school
and the obedience school needs a marketing consulting.
Evaluate what expertise you have to share with someone who also provides services or products that you need. If you have exhausted your personal network, there are a number of websites who specialize in bartering. A few of these websites are:
www.barteringconnection.com
The bartering connection helping you buy, sell or trade
http://www10.americanexpress.com/sif/cda/page/0,1641,6592,00.asp
How Your Small Business Can Grow with Bartering
Bartering is taxable and must be reported income in
the year in which you receive the goods or services.
Generally, you report this income on Schedule C, Profit
or Loss from Business Form 1040. If you are in a business
or trade, you may deduct any costs you incurred to perform
the work that was bartered. If you exchanged property
or services through a barter exchange, you should receive
a Form 1099B
*The Build WorkSource web site provides material on topics of interest to businesses. It is not intended as legal advice or to answer specific legal or employment problems. The information presented in the Build WorkSource web site is from many sources therefore there can be no warranty or responsibility as to the accuracy, originality or completeness. Build WorkSource is not engaged in rendering legal or other professional counsel.